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2012 RFP - LQ Master Fee Study UpdateT4hf4 V4 a" COUNCIL/SA MEETING DATE: March 20, 2012 ITEM TITLE: Approval of a Request for Proposal to Obtain Professional Consulting Services to Complete a Comprehensive Fee and Rate Study RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: v CONSENT CALENDAR: O STUDY SESSION: PUBLIC HEARING: Approve a Request for Proposal (RFP) to obtain professional consulting services to complete a comprehensive fee and rate study. FISCAL IMPLICATIONS: The work will be funded through the general fund reserve. If approved, new fees and rates would factor in a repayment to the general fund reserve for the cost of the consultant study. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: At the February 7, 2012 City Council meeting, staff presented various revenue alternatives for City Council discussion and consideration. The last time the City undertook a cost allocation review and comprehensive fee and rate study was in 1996; and the study was done by DMG consultants. Staff was directed by Council to prepare a Request for Proposal (RFP) to select a consultant to complete a comprehensive fee and rate study (Attachment 1). The Interim City Manager intends to appoint a Selection Committee consisting of the following members: Ed Wimmer, Public Works Principal Engineer; Greg Butler, Building & Safety Department Director; and Les Johnson, Planning Department Director. If the City Council wishes to appoint a different Selection Committee, the Committee would be subject to the Brown Act unless the Committee consists solely of two council. members. Contingent upon City Council approval of the RFP on March 20, 2012, the following is the project schedule: City Council Approves RFP March 20, 2012 RFP Advertisement Period March 21 through April 16 2012 City Council Awards PSA May 1, 2012 Consultant Final Report to City Council June 19, 2012 FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve a Request for Proposal (RFP) to obtain professional consulting services to complete a comprehensive fee and rate study; or 2. Do not approve a Request for Proposal (RFP) to obtain professional consulting services to complete a comprehensive fee and rate study; or 3. _Provide staff with alternative direction. Respectfully submitted, othy . Jo son Public Works rector/City Engineer Approved for submission by: Mark Weiss, Interim City Manager Attachment: 1. Comprehensive Fee & Rate Study Request for Proposal (RFP) ATTACHMENT 1 CITY OF LA QUINTA, CALIFORNIA REQUEST FOR PROPOSALS (RFP) COMPREHENSIVE FEE & RATE STUDY (SUBMITTAL DEADLINE — MONDAY, APRIL 16, 2012 at 5:00 p.m.) INTRODUCTION The City of La Quinta is requesting proposals for a Comprehensive Fee and Rate Study. BACKGROUND The City of LA Quinta is governed by a council-manager general law form of government. The City currently employs 86 full-time employees. Incorporated in May 1982, La Quinta has a population of 37,467 according to the 2010 Census. Encompassing approximately 35 square miles, La Quinta is part of the Coachella Valley within Riverside County, California. The total budget for the 201 1 /2012 fiscal year is approximately $126.2 million, with General Fund operations representing approximately $40.1 million and a capital budget of $19.9 million. The last comprehensive cost of services study was undertaken in 1996 by a consultant hired by the City. SCOPE OF WORK- Comprehensive User Fee & Rate Study: Project tasks shall include, but are not necessarily limited to, the following. If the consultant feels that additional tasks are warranted, they must be clearly identified in the consultant's proposal. 1. Work and meet with City staff to refine the project scope, purpose, uses, and goals of the City's User Fee Study to ensure that the study will be both accurate and appropriate to the City's needs. Review project schedule and answer any questions pertaining to the successful development of the study. 2. Meet with staff and conduct interviews as needed to gain an understanding of the City's processes and operations. Conduct a comprehensive review of the City's existing fees, rates, and charges; including, but not limited to, the following: permits, licenses, planning fees, building fees, engineering fees, and administrative fees. City of La Quinta, CA - Request for Proposals Cost Allocation Review, Rate and Fee Study, Impact Fee Study March 20, 2012 3. Identify the total cost of providing each City service at the lowest reasonable activity level and in a manner that is consistent with all applicable laws, statutes, rules and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to, Proposition 218. 4. Compare service costs with existing recovery levels. This should include any service areas where the City is currently charging for services as well as areas where we perhaps should charge, in light of the City's practices, or the practices of similar or neighboring cities. 5. Recommend appropriate fees and charges based on .your analysis together with the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic (e.g. park and facility use and senior services). Include in the recommendation a percent (%) fee escalator. 6. Prepare a report that identifies each service, its full cost, recommended and current cost recovery levels. The report should also identify the direct cost, the indirect cost, and the overhead cost for each service; and provide a model for adjusting these fees and rates for the City's current and future needs. 7. The report shall identify present fees, recommended fees, percentage change, cost recovery percentage, revenue impact and fee comparison with other Coachella Valley as well as southern California cities that are comparable to La Quinta. A survey comparison of rates and fees with similar cities is for information only. 8. Report on any other matters that are identified during the course of the evaluation that are determined to be of importance for the City to consider. 9. Present findings to the City's management group and make necessary adjustments as requested. 10.Prepare and deliver presentations to the La Quinta City Council to facilitate its understanding of the cost allocation plan and its implications for the City and make necessary adjustments as requested. 2 City of La Quinta, CA - Request for Proposals Cost Allocation Review, Rate and Fee Study, Impact Fee Study March 20, 2012 11.Prepare a final fee study report and provide four (4) copies, with one unbound copy and a single PDF file of the cost allocation plan that can be made available to staff via the City's intranet. Any Master fee schedule revisions developed shall also be made available to the City on CD/ROM and/or electronically, providing the ability to add or delete and/or update information as needed. 12.Provide the City with an electronic copy of the final comprehensive study, including related schedules and cost documentation in a format that can be edited and updated by City staff to accommodate changes in the organization or changes in costs. Develop or modify the existing model for adjusting fees and rates to include the addition of hypothetical service area information for future services enhancements, and the ability to calculate the estimated costs of providing the service under consideration (scenario and "what if" analyses). I 13.Provide on -site training to enable staff to update fees on an annual basis. 14.Consult with City staff should it become necessary to defend the City's user fees as a result of any legal or other challenge. PROPOSAL FORMAT Proposals (work proposal and cost proposal) are to be submitted in separate envelopes clearly marked with the consultants name, address and phone number. Only one proposal per consultant will be considered. Consultants are encouraged to keep their proposals brief and relevant to the specific work required. Proposals shall include the following items: 1. Work Proposal (envelope 1) - submit 4 copies a. Cover letter on company's letterhead summarizing the proposal and signed by an individual authorized to execute legal documents on behalf of the consultant including: • A summary of the qualifications of the firm to perform the services described herein, including, but not necessarily limited to: The firm's previous experience in performing similar services for other municipalities; 3 City of La Quinta, CA - Request for Proposals Cost Allocation Review, Rate and Fee Study, Impact Fee Study March 20, 2012 - The firm's ability to produce the required product in a timely fashion and the ability to present any necessary reports or studies to elected officials and/or the general public. b. The proposal shall contain the following: 1) Legal name and address of company and 2) Legal form of company (partnership, corporation, joint venture, etc.). If joint venture, identify the members of the joint venture and provide all information required under this section for each member. c. If company is wholly owned subsidiary of a "parent company," identify the "parent company." d. Description of the Project Team. The names, titles, and qualifications (resumes) of the proposed project manager and support staff and subcontractors who will be conducting the work on this assignment, including their experience and projects in which they had "hands on" responsibility and length of time with the firm. The selected consultant shall not substitute the project manager without prior approval of the City of La Quinta. The project manager will be expected to be fully involved and conversant in the details of the project on a day-to-day basis. e. Scope of work for each project (a description of the work program including a description of deliverables and activities). f. Description of the extent to which City staff support will be required. g. Outline of the proposed work plan for each project. h. Work proposal shall be no more than 25 pages. i. Proposed project schedule to begin no later than May 2, 2012 and conclude within 45 days, subject to City extension as necessary. 2. Cost Proposal (envelope 2) — submit 2 copies The consultant is to submit a detailed cost proposal for all services and materials anticipated in completing the project. Staff hours and extended billing rates per classification of personnel will be indicated for each defined task and/or sub -task. a. Project Budget for the Comprehensive Fee and Rate Study— a description of the project budget itemized according to individual tasks. 4 City of La Quinta, CA - Request for Proposals Cost Allocation Review, Rate and Fee Study, Impact Fee Study March 20, 2012 b. Project budgets should include a project schedule with activities, milestones, and deliverables; and project budget defined, at minimum, as follows: • By task with a collective total by milestone and deliverable; ■ Labor rates for all project team members; ■ General overhead rates; and • Costs for expenses such as printing, travel and attendance at meetings. c. The consultant shall present a specific "not to exceed" fixed fee, including associated fees (i.e., printing costs, attendance at meetings, travel). A requested payment schedule should accompany the work schedule. Each phase of work should have an itemized budget including labor costs and expenses for each piece of work. The proposal should include staff hourly rates. d. Proposed services to be sub -consulted, anticipated subcontractors, and anticipated cost for these services. e. A list of references from other municipalities for similar projects including the name of the organization and the primary contact person(s). ANY PROPOSAL NOT CONTAINING FULL AND COMPLETE RESPONSES TO THE ABOVE MINIMUM ELEMENTS WILL BE DEEMED UNRESPONSIVE TO THIS RFP. ALL LATE AND UNRESPONSIVE PROPOSALS WILL BE SET ASIDE BY THE REVIEW PANEL AND ELIMINATED FROM FURTHER CONSIDERATION. ONLY THOSE SUBMISSIONS RESPONSIVE TO THIS RFP AND SUBMITTED BY THE DEADLINE NOTED BELOW, WILL BE EVALUATED BY THE REVIEW PANEL AND PRESENTED (ONE PROPOSAL) TO THE CITY COUNCIL AS APPROPRIATE. FOUR COPIES WITH ONE BEING AN UNBOUND COPY OF THE RESPONDENT'S PROPOSAL SHALL BE SUBMITTED BY NO LATER THAN 5.00 PM, MONDA Y, APRIL 16, 2012. AVAILABLE BUDGET/CONTRACT The City wishes to negotiate a fixed price contract with a "not to exceed" dollar total based on a clearly defined scope of work. It should be noted that the selected consultant(s) shall be required to meet the insurance requirements outlined in the City's "Professional Services Agreement (PSA) 5 City of La Quinta, CA - Request for Proposals Cost Allocation Review, Rate and Fee Study, Impact Fee Study March 20, 2012 Selected prospective consultant shall be required to participate in negotiations with City staff. The successful consultant will be expected to enter into the attached standard City Professional Services Agreement (PSA). TENTATIVE SELECTION TIMELINE The following is a tentative time schedule related to the requested fee studies: Proposals Due April 16,2012 by 5:00 p.m. Review Proposals Week of April 16, 2012 Interview Consultants (optional) Week of April 23, 2012 Staff submits recommendation to City Council May 1, 2012 Work begins May 2, 2012 Completion of project June 2, 2012 Presentation of draft report to Staff June 7, 2012 Presentation of final report to City Council June 19, 2012 SELECTION CRITERIA Work programs will be reviewed by a consultant selection committee. The committee will rank the consultants for contract negotiations based upon the materials submitted within the work proposal. The committee may or may not choose to interview two or more closely -rated firms, but will not expect or schedule time for elaborate presentations. Cost proposals will be opened only after the ranking process is complete. The City will open contract negotiations with the top -ranked firm. The successful consultant will enter into the attached Professional Services Agreement (PSA►. Proposals will be evaluated based on the following criteria: • Thoroughness and understanding of the tasks to be completed. • Background and experience in organizational analysis evaluation. • Staff expertise and overall experience of personnel assigned to the work. • Time required to accomplish the requested services. • Responsiveness to requirements of the project. I. City of La Quinta, CA - Request for Proposals Cost Allocation Review, Rate and Fee Study, Impact Fee Study March 20, 2012 • Recent public sector experience, preferably in a municipal setting, conducting similar studies. • Costs. REVISION TO THE RFP The City reserves the right to revise the RFP prior to the date that proposals are due. Revisions to the RFP shall be posted on the City's RFP Manager website as addendums and an email notification will be sent out. The City reserves the right to extend the date by which the proposals are due. DISCRETION AND LIABILITY WAIVER The City reserves the right to exercise discretion and apply its judgment with respect to any proposals submitted. The City reserves the right to reject any proposal, either in part or in its entirety, or to request and obtain, from one or more of the consulting firms submitting proposals, supplementary information as may be necessary for City staff to analyze the proposals pursuant to the consultant selection criteria contained herein. The City may elect to award a contract for either project, or award projects in multiple phases, as is deemed to be in the City's best interest. Should the City award projects in phases, the City reserves the right to award the multiple phases to the same firm. The City may require consultants to participate in additional rounds of more refined submittals before the ultimate selections of a consulting team(s) are made. These rounds could encompass revisions of the submittal criteria in response to the nature and scope of the initial proposals. The consultant, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP. Although, it is the City's intent to choose only a small number of the most qualified consulting teams to interview with the City, the City reserves the right to choose any number of qualified finalists. This RFP does not commit the City to award a contract, to defray any costs incurred in the preparation of a proposal pursuant to this RFP or to procure or contract for work. 7 City of La Quinta, CA - Request for Proposals Cost Allocation Review, Rate and Fee Study, Impact Fee Study March 20, 2012 All proposals submitted in response to this RFP become the property of the city and public records and, as such, may be subject to public review. The City reserves the right to cancel, in part or in its entirety, this RFP including, but not limited to: selection procedures, submittal date, and submittal requirements. If the City cancels or revises the RFP, all consultants will be notified by e-mail. INSURANCE REQUIREMENTS The Consultant shall demonstrate the willingness and ability to provide the required insurance coverage as set . forth in the Professional Services Agreement (PSA). All endorsements are to be received and approved by the City prior to the commencement of any work. The successful consultant will be required to enter into a Professional Services Agreement (PSA) with the City and secure a City business license. DIRECTIONS FOR DELIVERY OF THE PROPOSAL Proposals shall be clearly identified as: "Response to Request for Proposals for Comprehensive Fee and Rate Study". Proposal packages are to be submitted to the City on/or before Monday, April 16, 2012 at/or before 5:00- p.m. Proposals received after the stated deadline shall not be accepted. Proposal packages are to be delivered to: Timothy R. Jonasson, Public Works Director/City Engineer City of La Quinta Public Works Department 78-495 Calle Tampico, La Quinta, CA 92253 rnti-rerrc All questions regarding this project. should be directed to Timothy R. Jonasson, Public Works Director/City Engineer at (760) 777-7042.